Be sure to separate out your pre-paids / escrows. 

The lender will not accept a contract requiring the seller to provide financing assistance, such as points, pre-paids and or closing costs to be paid by the seller Also, the lender will not allow the seller to pay for home warranties or any inspections to the property.

Last weekend I had pre-paid to be with one of my mastermind business groups to be in Costa Rica, however I ended up in Costa Mesa.Fixer Jay Decima  held what may have been his last (3) day seminar and I wasn't going to miss this.

They all operate the same.Bucket 1 is the down payment Bucket 2 is the closing costs Bucket 3 is the escrow/prepaids for taxes and insurance The first bucket is your required minimum investment/“skin in the loan”.

However, considering the cashflow I had received plus the overly generous prepaid city tax account that the previous sellers left me, I was about breakeven.

Use an attorney for the lease or sign up with a prepaid legal service like LegalShield for a lease review.

There will also be a loan documentation fee of $300 due at closing.Prepayment Fee: During the Permanent Period, any portion of the Loan which is prepaid will be subject to a prepayment penalty as calculated below: During first year of loan term 5% During second year of loan term 4% During third year of loan term 3% During fourth year of loan term 2% During the fifth year of loan term 1% Please note the prepayment penalty will not be enforced if the property is sold through an arms length contract.Loan Cost: The cost of the Loan, including, but not limited to, insurance, document preparation, attorney fees and filing fees, will be borne by the BorrowerHazard Insurance: Required on all insurable collateral. 

During lease negotiations a prospective commercial tenant has suggested that in year 2 ( two ) they would be willing to prepay the full year but would like a discount for doing so.

What is the industry norm, as far a...

I believe the other thing that would require the use of the accrual method would be prepaid insurance premiums or other expenses which are not used up within 12 months.

I also recommend you have your buyer bring a 1 year pre-paid insurance policy to the closing table which would replace the existing insurance.